problem with intermediate broker

ramu28 · #1 21st November 2007, 12:41 PM

Hi all,

I have opened a trading account in XYZ commodities and derivaties ltd through my friend and invested one and a half lakh rupees in it. As i dont have good idea on trading i asked my friend to do the trading. When i asked them how to verify what he is doing in my account they said that i will get a statement of transactions done the next day by courier. If i have any doubt about the safety of the money u can close the account and get the remaining money in the account back.

For some days it went well. I received statements of the transactions. Some loses and some gains my balance approximately remained same. After some days i stopped getting statements. I asked my friend about that and he said he is not doing any trading as the market is very high and will start again once the market is down. Two weeks passed by still no statement was there.
I was worried and once went to the office and asked them to show my balance. I was frightened on seeing only 700 rupees balance in my account. Transactions were done in my account the previous two weeks. I asked them why i did not receive any statements about the transactions. They told that my friend has asked them not to send any statements to my home, instead he(friend) will collect the statements from the office, thats why they stopped sending me the statements.

I did not give them any written letter nor did they call me or mail me to confirm what my friend has said, but simply stopped sending me statements.They said they cannot do anything about this. My friend simply collected them, did not show them to me.

Now iam in a big confusion about what to do. What should i do?. Can i take any legal action against them?

Please help me out.

Thanks
Ramakrishna sura.